Luxon: From Profits to Prime Minister
Christopher Luxon graduating from UC with a Master in Commerce in Business Administration. Source: @christopherluxon on Instagram.
A headline-grabbing figure, known for his omnipresence in the news cycle, possesses a strong grasp on financial matters arguably rivalled by few others in New Zealand. Christopher Luxon: a name that used to fill corporate corridors, but now holds the highest political power in Aotearoa.
His career to date doesn’t necessarily emit the idea that he has always possessed political veins, but it does highlight his ability to quickly climb to the top. But what prompted this shift from driving profitability to crafting policies, and should we call him our PM or our CEO?
Politics has a huge role to play in business, but the switch from a commerce-centric career to a community-focused one is something Luxon has never really verbally delved into.
Despite partaking in debating in high school, Luxon’s academic focus has been business-centric. He expressed to RNZ that he wanted to be a businessman from a young age, working towards his Master of Commerce degree at the University of Canterbury.
With 18 years at the large consumer goods company Unilever, Luxon was sitting in a nice position to enter Air New Zealand and head very quickly to the top. On top of being king of the castle, the salaries that cushioned those roles were more than comfortable.
Luxon was raking in a whopping $4.2 million as CEO of Air New Zealand, only to dive headfirst into the political world, where the salary is over a 90% decrease. That downwards jump is a large one, and with such a business-heavy background, the questions around this career shift remains prominent.
An interview with RNZ investigative reporter Guyon Espiner shed light on Luxon’s prominent interest in political leaders that have come before him. In a packed white bookcase in Luxon’s family home, Espiner uncovered an array of books of political ideologies and leaders, ranging from Helen Clark to Obama.
Luxon's adoration for Obama is appeared particularly notable in this interview, bordering on fervent admiration. While waiting in line for a shoe shine in Chicago, Luxon struck up a conversation with the then-senator, the man whose 2008 presidential campaign he considers the most successful ever.
This interview shed a scarce bit of light on Luxon’s political interest and further highlighted his intrigue in leadership, whether it be business or politically related.
Air New Zealand pilot Tony Paine was under Luxon’s leadership throughout his time at the airline. Paine explained that he “really had nothing to do with him”, due to pilots generally being left to their own devices.
Despite this, he admired Luxon’s engagement with staff even when they never really saw him, believing that “he does not have a personal agenda nor an axe to grind. I believe he truly wants people to achieve their potential and promotes that in his style of leadership.”
During his tenure at Air New Zealand, questions arose about Luxon's leadership, particularly his relationships with lower-level staff. In a Stuff article, E tū head of aviation Savage said, "he was not a CEO who spent a lot of time with ordinary workers.”
Evidence for this claim is Tony Paine, who said, “The closest I got to him was being in the Koru Club at Hamilton Airport one day several years ago, he laughed. “He had no idea who I was and nor would he have known that I was an employee of Air New Zealand.”
Despite this, Paine reiterated a belief that Luxon was still “totally engaged with all staff” even if they rarely saw him. He cited Luxon’s use of weekly updates, regular surveys to check on staff wellbeing and opinions, and a focus and clear agenda for the company. “I guess when there is 12,000 staff to look after, it would always be difficult for any CEO to ever get to know the majority of people who were working for the company.”
Luxon with then-outgoing PM Chris Hipkins at the State Opening of the 54th Parliament. Source: Government House.
Luxon’s property portfolio, which includes seven buildings, has drawn scrutiny – especially when it was revealed that he was claiming a weekly $1000 living entitlement whilst living in his own mortgage free apartment.
Luxon claimed that the Premier house is in need of renovations, hence why is he is living elsewhere and indulging in his entitlement to the living costs. But claiming a yearly $52,000 of taxpayers’ money sparked a political fire, due to the hypocrisy of his words compared to his actions – especially as he called to end what he termed a "free ride" for welfare beneficiaries.
Opposition leader Chris Hipkins chimed in. “Christopher Luxon is treating hard-working Kiwis like a bottomless ATM. He needs to apply his own tough love standard to himself,” said Hipkins.
Despite initially contesting the claims of hypocrisy, Luxon said, “It is an entitlement and I am well within the rules.” He quickly vowed to pay back the $13,000 he had claimed.
Former National Leader Todd Muller. Source: KiwiAgriPolitics / Wikimedia Commons.
Canta asked former National Party leader Todd Muller if there are skills from business which could be brought into the political sphere. He said that running a business requires “strategic, big picture thinking” and “a real deep capacity to get the best out of your people, because business, like life, it’s all about people.”
Muller believes Luxon’s motivation to go from a million-dollar salary to a lesser-paid political role was for “genuine service”, and that Luxon models himself on the servant leader model.
“He will give enormous amounts of himself to try and change the country for the better. Even if you don’t like his politics you will see his integrity shine through. Ultimately he is there to make a difference,” said Muller.
There is no doubt that a difference is and will continue to be made, but whether this difference will be praised or frowned upon is in the hands of the Kiwis who are most impacted by these differences. Only the future will tell the tale of whether Aotearoa will truly be “back on track” – whatever that “track” may be.